The banking and financial system in India has considerably transformed itself. Not only they have flexible policies and features for the customers but now the banks and NBFCs extend their loan schemes to the retired people and pensioners as well. The pensioners can now easily apply for the personal loan online and can fulfil their aspirations or meet the financial needs in case of an emergency.

The pensioners' loan offered by bank allows the pensioners to take the loan against FDs, pension, National Saving Certificates, etc. Despite many banks and financial institutions reluctant to give the loan to the pensioners, some of the prominent banks like State Bank of India, Dena Bank, Bank of Baroda, PNB, etc. provide the personal loan to the pensioners quite easily. One can check whether he will get a personal loan for pensioners by clicking here.

In this blog, we will discuss in detail about the personal loan offered by banks to pensioners. Although eligibility criteria for most of the banks remain the same, the interest rates may vary from one bank to another. Here is the detailed list of the same:

1. State Bank of India Pension Loan

State Bank of India- SBI is one of the leading government banks in India that also offers the personal loan to the pensioners. The bank extends the loan to retired Central and State Government. The objective behind this loan is to help the pensioners meet financial needs.

Processing Fees: The defence pensioners are not charged any processing fee. For others, the processing fees can be up to 0.5% of the loan amount plus taxes. This minimum processing fees charged by SBI is ₹ 500 plus taxes.

2. Central and State Government retired professional can apply for this loan

3. Retired Central and State Government employees

2. Central Bank Of India Pension Loan

Central Bank of India – This leading bank provides personal loan to the pensioners and retired professionals. Central Bank of India offers a lucrative interest rate and there is no processing fees thus making it easy for the pensioners to avail the loan.

Processing Fees: There are no processing fees

Loan Limit: ₹ 5 Lakhs for the pensioners who are below 75 years and ₹ 2 Lakhs for the pensioners who are above 75 years.

Interest Rate: 11.70%

Eligibility for Central Bank of India Pension Loan:

Punjab National Bank – PNB is known for providing a range of loans and financial schemes to the people. The bank provides personal loan to the pensioners and retired professionals. Central Bank of India offers a lucrative interest rate and there are no processing fees thus making it easy for the pensioners to avail the loan.

Processing Fees: There are no processing fees charged by the Punjab National Bank but it does charge ₹ 500 as documentation charge.

Loan Limit: Minimum ₹ 25,000

Maximum – For pensioners who are up to 70 years of age- ₹ 10 Lakhs

For pensioners who are above 70 years - ₹ 7.5 Lakhs

For pensioners who are above 75 years - ₹ 5 Lakhs

Interest Rate: 2.60% above the MCLR.

Repayment Period- 60 EMIs for those who are below 75 years of age and for those who are above the age of 75, the bank allows 24 EMIs

Eligibility for Personal Loan for pensioners:

The pensioner should be drawing pension via Punjab National Bank

Eligibility for Punjab National Bank Pension Loan:

The pensioner drawing pension via PNB branch is eligible for the pension loan from Punjab National Bank.

5. Bank of Baroda Pensionl Loan

Bank of Baroda Loan to Pensioners- Bank of Baroda is one of the leading banks providing loans and other financial products to the individuals looking for financial help.

Processing Fees: There are no processing fees for the pensioners and family pensioners of BOB but others are subjected to pay the processing fees of ₹ 1000

Loan Limit: ₹ 8 Lakhs for the pensioners who are below 70 years and ₹ 1.5 Lakhs for the pensioners who are above 70 years.

Interest Rate: The base rate plus 2.00% p.a.

Repayment Period- 77-78 years of age

Eligibility for Central Bank of India Pension Loan:

1. The pensioners should be drawing a pension from BOB

2. Family pensioners of BOB

3. The age of pensioners should not be more than 75

6. Bank Of India Pension Loan

BOI- The Bank of India or BOI offers Star Pensioner Loan Scheme to the prisoners. Pensioners drawing their pension from Bank of India or are retired employees of Bank of India is eligible to get a personal loan from Bank of India.

Processing Fees: There are no processing fees charged from pensioners who are above the age of 60. Pensioners who are above the age of 60 are charged a processing fee of 2% of the loan amount.

Loan Limit: Bank of India offers loan between₹ 3 Lakhs to ₹ 5 Lakhs. The family pensioners can get the loan of ₹ 1.5 Lakhs

Interest Rate: 2.00% + BSS (0.30%) over 1 Year MCLR

Repayment Period- 60 EMIs

Eligibility Criteria-

1. Retired Bank of India professionals

2. Family pensioners from Bank of India

3. Pensioners drawing from pension through Bank of India branches

Documentation for Personal Loan for the Pensioners-

The documentation for the banks remains almost the same. Following are the documents that you would require to produce at the time of personal loan application:

Address Proof- In order to submit your address proof, the bank will ask you to submit utility bills or telephone bill, electricity bill.

Lists six-month bank statement

Proof of retirement and a proof showing the details of your last employer.

Pension slip

As mentioned above, banks have already become very flexible when it comes to providing the personal loan to the pensioners. Apart from the above-mentioned banks, there are other banks that offer the personal loan to the pensioners. Most banks have set an upper age limit of 75 years while others restrict the age to 70 years. The personal loan not only helps them to meet their needs but also their aspirations and wants.

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